Synopses & Reviews
New Institutional Economics (NIE) has skyrocketed in scope and influence over the last three decades. This first Handbook of NIE provides a unique and timely overview of recent developments and broad orientations. Contributions analyse the domain and perspectives of NIE; sections on legal institutions, political institutions, transaction cost economics, governance, contracting, institutional change, and more capture NIE's interdisciplinary nature. This Handbook will be of interest to economists, political scientists, legal scholars, management specialists, sociologists, and others wishing to learn more about this important subject and gain insight into progress made by institutionalists from other disciplines. This compendium of analyses by some of the foremost NIE specialists, including Ronald Coase, Douglass North, Elinor Ostrom, and Oliver Williamson, gives students and new researchers an introduction to the topic and offers established scholars a reference book for their research.
From the reviews: The Handbook of New Institutional Economics edited by Claude Menard and Mary Shirley gives an excellent picture of this emerging field. It also addresses the most interesting questions now at the forefront of economic research. - George Akerlof, University of California at Berkeley; Nobel Laureate Over the last thirty years, a very important influence on the development of economic analysis has been the emphasis on rights to property, their transferability and their implications for economic behavior, especially in relation to the law. It is very valuable to have the material of the "new institutional economics" brought together in a handbook, and especially so when the authors are themselves the leading researchers in the field. I look forward to using the handbook and to seeing its influence on further research. - Kenneth J. Arrow, Stanford University; Nobel Laureate I would like to recommend this book to economists of both East and West who have been focusing on comparing economic systems for the last decades, who have been examining first the reforms implemented in the communist countries and then the post-socialist transition there, and who have always been aware of the particular importance of institutions. Having read the outstanding and comprehensive essays published in this new Handbook, one can clearly see the close intellectual kinship between the approach used by the scholars studying post-socialist transformation and by the research program of "New Institutional Economics. - Janos Kornai, Collegium Budapest New institutional economics has been at the forefront of our search for understanding how societies operate and economies change. Until this handbook there has been no single volume explaining the field and exploring its horizons. It contains fascinating essays by the leading scholars in the field that provide an excellent overview of the any facets of NIE. NIE is here to stay and this book provides a comprehensive introduction for those interested in learning more about it. - Vernon Smith, George Mason University; Nobel Laureate "New Institutional Economics (NIE) has skyrocketed over the last three decades. ... This first handbook of NIE provides an overview of recent developments and broad orientations. ... This handbook will be of interest to economists, political scientists, legal scholars, management specialists, sociologists, and others wishing to learn more and gain insight into progress made by institutionalists from other disciplines. This compendium of analyses by some of the foremost NIE specialists ... raises questions ... and supplies scholars with tools for exploring answers to these questions." (Beyond Transition Newsletter, The World Bank, Vol. 16 (3), 2005)
Table of Contents
INTRODUCTION - Claude Ménard and Mary M. Shirley SECTION I: THE DOMAIN OF NEW INSTITUTIONAL ECONOMICS Ch.1: Institutions and the Performance of Economies over Time - Douglass C. North, Washington University in St. Louis Ch.2: The Institutional Structure of Production - Ronald Coase, the University of Chicago Ch.3: Transaction Cost Economics - Oliver E. Williamson, University of California at Berkeley SECTION II : POLITICAL INSTITUTIONS AND THE STATE Ch.4: Electoral Institutions and Political Competition: Coordination, Persuasion and Mobilization - Gary Cox, University of California at San Diego Ch.5: Presidential versus Parliamentary Government - John Carey, Washington University in St. Louis Ch.6: Legislative Process and the Mirroring Principle - Matthew McCubbins, University of California at San Diego Ch.7: The Performance and Stability of Federalism: An Institutional Perspective - Barry Weingast, Stanford University SECTION III : LEGAL INSTITUTIONS OF A MARKET ECONOMY Ch.8: The Many Legal Institutions that Support Contractual Commitments - Gillian K. Hadfield, University of Southern California Ch.9: Legal Systems as Frameworks for Market Exchanges - Paul Rubin, Emory University Ch.10: Market Institutions and Judicial Rulemaking - Benito Arrunada and Veneta Andonova, Pompeu Fabra Ch.11: Legal Institutions and Financial Development - Thorsten Beck, the World Bank and Ross Levine, University of Minnesota SECTION IV: MODES OF GOVERNANCE Ch.12: The New Institutional Approach to Organization - Claude Menard, University of Paris- Pantheon Sorbonne Ch. 13: Vertical Integration - Paul Joskow, Massachusetts Institute of Technology Ch. 14: Solutions to Principal-Agent Problems in Firms - Gary Miller, Washington University in St. Louis Ch. 15: The Institutions of Corporate Governance - Mark Roe, Harvard Ch. 16: Firms and the Creation of New Markets - Erin Anderson and Hubert Gatignon, INSEAD SECTION V: CONTRACTUAL ARRANGEMENTS Ch. 17: The Make or Buy Decisions: Lessons from Empirical Studies - Peter Klein, University of Missouri Ch. 18: Agricultural Contracts - Douglas Allen, Simon Fraser University and Dean Lueck, Montana State University Ch.19: The Enforcement of Contracts and Private Ordering - Victor Goldberg, Columbia University SECTION VI : REGULATION Ch.20 : The Institutions of Regulation. An Application to Public Utilities. - Pablo Spiller, University of California at Berkeley and Mario Tommasi, University of San Andres Ch.21: State Regulation of Open-Access, Common-Pool Resources - Gary Libecap, University of Arizona Ch.22: Property Rights, and the State - Lee Alston, University of Colorado and Bernardo Mueller, University of Brasilia Ch.23: Licit and Illicit Firm Responses to Public Regulation -Lee Benham, Washington University in St. Louis SECTION VII: INSTITUTIONAL CHANGE Ch.24: Institutions and Development - Mary M. Shirley, The World Bank and Ronald Coase Institute Ch.25: - Institutional and Non-Institutional Explanation of Economic Differences Stanley L. Engerman, University of Rochester and Kenneth L. Sokoloff, University of California at Los Angeles Ch.26: Institutions and Firms in Transition Economies - Peter Murrell, University of Maryland Ch.27: Social Capital, Social Norms and the New Institutional Economics- Philip Keefer and Steve Knack, The World Bank Ch.28: Commitment, Coercion and Markets: The Nature and Dynamics of Institutions Supporting Exchange - Avner Greif, Stanford University SECTION VIII: PERSPECTIVES Ch.29: Economic Sociology and New Institutional Economics - Victor Nee and Richard Swedberg, Cornell Ch.30: Doing Institutional Analysis: Digging Deeper than Markets and Hierarchies - Elinor Ostrom, Indiana University